Naira Crashes Against Dollar Across Most Market Segments
By Cowry Asset
In the just concluded week, the local currency appreciated week-on-week in most foreign exchange market segments.
The Naira depreciated against the US Dollar by at the Investors & Exporters Forex Window (I&E FXW) by 0.06 percent to N360.25/USD while it weakened by 0.05 percent to N329.42/USD at the interbank market (NIFEX). This was despite injections by the CBN worth $195 million into the foreign exchange market of which $100 million was allocated to Wholesale (SMIS), $50 million was allocated to Small and Medium Scale Enterprises and $45 million was sold for invisibles.
The Naira however closed steady the US Dollar at the Bureau De Change and Parallel market segments by 0.27 percent and 0.54 percent to N365/USD and N370/USD respectively.
Meanwhile, dated forward contracts at the interbank OTC segment appreciated amid increase in the foreign exchange reserves – external reserves increased week-on-week by 0.73 percent to $33.86 billion as at Wednesday, November 01, 2017.
The 1 month, 2 months, 3 months and 12 months contracts appreciated w-o-w by 0.14 percent, 0.37 percent, 0.70 percent and 1.43 percent to close at N365.52/USD, N370.82/USD, N376.14/USD and N418.62/USD respectively.
This week, retain our stable outlook for the exchange rate amid sustained stability in global crude oil prices which should result in further build-up in foreign reserves as well as CBN’s continued intervention in the various segments of the interbank foreign exchange market.